LTTC(SZ:000726) Tianfeng Securities·2025-05-04 13:05Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [6]. Core Views - The company is expected to see profit contributions from new materials and high-end overseas fabrics by 2026, with recent investments in smart manufacturing and information management enhancing operational efficiency [3][4]. - The company reported a revenue of 1.5 billion yuan in Q1 2025, a year-on-year increase of 5%, and a net profit of 150 million yuan, up 117% year-on-year [1]. Financial Performance - For 2025, the company forecasts revenues of 6.4 billion yuan, with net profits projected at 459.2 million yuan, reflecting an 11.91% growth compared to 2024 [4][5]. - The gross margin is expected to remain stable at 24%, with a net profit margin of 10% for Q1 2025, an increase of 5 percentage points year-on-year [1]. Operational Strategy - The company is enhancing its production methods through the LTPS (Lutai Production System) to improve cost efficiency and quality control [2]. - A global marketing network is being developed to expand market reach and strengthen relationships with strategic clients, focusing on leisure product development [3]. Financial Projections - The company’s earnings per share (EPS) are projected to increase from 0.56 yuan in 2025 to 0.71 yuan by 2027, with a price-to-earnings (P/E) ratio decreasing from 11x to 9x over the same period [4][5]. - The total revenue is expected to grow from 6.4 billion yuan in 2025 to 7.8 billion yuan by 2027, with a compound annual growth rate (CAGR) of approximately 10% [5].